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Impressive Growth and Huge Loss for E-Commerce Leader Richard Liu

Impressive Growth and Huge Loss for E-Commerce Leader

2016-03-02 11:40

JD.com saw an impressive year-on-year sales growth in 2015 but the Chinese e-commerce company is still not profitable.

For JD.com, 2015 was a successful year in terms of revenue, sales and financial activities. For the full year JD.com reported a 78% increase in sales, gross merchandise volume, GMV. From 260.2 billion yuan in 2014, to 462.7 billion yuan ($71.4 billion) in 2015.

Reported a Loss of $1.4 Billion

Net revenue came in at 181.3 billion yuan (US$28.0 billion), up 58% from 115.0 billion yuan. JD.com is however still not profitable and reported a net loss of 9.4 billion yuan ($1.4 billion), compared to 5.0 billion yuan in 2014.

For the fourth quarter, the Chinese e-commerce company reported that GMV increased 69% to 145.3 billion yuan ($22.2 billion). Revenue rose 57% from a year ago to 54.6 billion yuan ($8.3 billion).

At the same time net losses ballooned to 7.6 billion yuan ($1.2 billion) compared to 0.5 billion yuan in the same period last year.

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Imported Goods Accounted for 1% of Sales

JD.com, ranked as the world's third largest e-commerce company according to consulting firm Deloitte, last spring launched JD Worldwide. An e-commerce platform that competes with Alibaba's Tmall Global and allows foreign retailers to sell directly to Chinese consumers.

According to JD sales of imported goods on its international marketplace accounted for 1% of 2015 GMV, or about $7 billion. The company also said consumers placed 61% of orders from mobile devices in the fourth quarter. An increase of more than 230% compared to the same period in 2014.

– JD.com’s strong momentum continued with another period of solid growth in the fourth quarter. China’s middle class consumers increasingly demand quality brands and authentic products, and we have been very effective at winning over more customers by introducing them to the most reliable and convenient online shopping experience in China, says Richard Liu, CEO of JD.com

Jimmy Andersson

Senior editor

Freelance journalist who have gone from covering sports to online retailing. Been writing about e-commerce for four years.

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